What will happen to food prices after Doha talks?

U.S. Trade Representative Susan Schwab said: A successful global agreement among members of the World Trade Organization might help stem increases in food prices

WTO negotiators are in the seventh year of talks on an accord to trim farm aid, cut tariffs and lower industrial trade barriers to buoy the global economy and ease poverty.

How these events will affect commodity market and food prices?

Thanks in advance.

Answers

DaveDiggz answered a question in Commodities.
787 points

DaveDiggz answered one year ago …

If the events are successful and capital/resources are allowed to flow unrestricted then, obviously, prices will come down. But that is a VERY BIG "if"...as the article stated, these talks have been going on for seven years...maybe the recent global increase in food prices (even in the US) will be the spark that finally puts these measures in motion. As for the likelihood of this happening, I really would only be guessing...but, I'd like to hear what other TickerHounds might have to say.

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Oldman answered a question in Commodities.
2709 points

Oldman answered one year ago …

With rice-exporting countries in SE Asia deciding to hold back exports of rice; with that idiot president in Argentina increasing export tariffs on agricultural products; with water shortages of extreme levels in southern continents (Chile, SE Australia, South Africa); with delayed planting in the Northern U.S. wheat and corn belt; etc....the diplomats can jaw and posture, but they can't reduce shipping costs and magically provide the infrastruture for food distribution. I am pessimistic, in contrast to Mr. Diggz.

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jester112358 answered a question in Commodities.
411 points

jester112358 answered one year ago …

When it comes to resources, its every country for itself. That's why China has been buying equity positions in minerals, food, oil, coal producers etc. using its large capital reserves. Also, trying to corner the gold and silver market. Human nature is to hoard, not share. Just observe how even Americans attempted to clear the shelves of rice during the non-existent "rice shortage" in the USA.

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